The correct option is B Acts as an oxygen scavenger.
The root nodule bacterium is microaerobic in the sense that it requires oxygen but the high concentration of oxygen is detrimental to nitrogen-fixing enzyme system. Here leghaemoglobin proves beneficial, it absorbs or binds oxygen so that there is no free oxygen left in the nodule and then carries micro-amounts of oxygen to the nodule bacteroids. Thus the correct answer is option B.